§ 3179.102 - Subsequent well tests.

§ 3179.102 Well completion and related operationsSubsequent well tests.

(a) Except as provided in § 3179.6, and unless technically infeasible, after a well has been hydraulically fractured or refractured, gas that reaches the surface during well completion, post-completion, and fluid recovery operations must be:

(1) Captured and sold;

(2) Directed to a flare pit or flare stack to combust any flammable gasses, subject to the volumetric limitations in § 3179.103(a)(3);

(3) Used in operations on the lease, unit, or communitized area; or

(4) Injected.

(b) An operator will be deemed to be in compliance with the requirements of paragraph (a) of this section, if the operator is in compliance with the requirements for control of gas from well completions established under 40 CFR part 60, subpart OOOO or subpart OOOOa or if the well is not a “well affected facility” under either of those subparts.

(c) The requirements of paragraph (a) of this section will not apply where the operator demonstrates through a Sundry Notice, and the BLM agrees, that compliance with paragraph (a) of this section would impose such costs as to cause the operator to cease production and abandon significant recoverable oil reserves under the lease.

(d) To support a demonstration under paragraph (c) of this section, the operator must submit a Sundry Notice that includes the following information:

(1) The name, number, and location of each of the operator's wells, and the number of the lease, unit, or communitized area with which it is associated;

(2) The oil and gas production levels of each of the operator's wells on the lease, unit or communitized area for the most recent production month for which information is available;

(3) Data that show the costs of compliance with paragraph (a) of this section on the lease;

(4) Projected costs of and the combined stream of revenues from both gas and oil production, including: the operator's projections of oil and gas prices, production volumes, quality (i.e., heating value and H₂S content), revenues derived from production, and royalty payments on production over the next 15 years or the life of the operator's lease, unit, or communitized area, whichever is less.

(e) The operator must comply with this section beginning January 17, 2019.

[81 FR 83078, Nov. 18, 2016, as amended at 81 FR 88634, Dec. 8, 2016; 82 FR 58072, Dec. 8, 2017]

Gas flared during well tests subsequent to the initial production test is royalty free for a period not to exceed 24 hours, unless the BLM approves or requires a longer test period.

(b) The operator may request a longer test period and must submit its request using a Sundry Notice.